Correlation Between Wuhan Yangtze and Xinhua Winshare
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Wuhan Yangtze and Xinhua Winshare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wuhan Yangtze with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Xinhua Winshare.
Diversification Opportunities for Wuhan Yangtze and Xinhua Winshare
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wuhan and Xinhua is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ and Wuhan Yangtze is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wuhan Yangtze Communication are associated (or correlated) with Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Xinhua Winshare
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to under-perform the Xinhua Winshare. In addition to that, Wuhan Yangtze is 2.01 times more volatile than Xinhua Winshare Publishing. It trades about -0.51 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.13 per unit of volatility. If you would invest 1,511 in Xinhua Winshare Publishing on October 14, 2024 and sell it today you would lose (69.00) from holding Xinhua Winshare Publishing or give up 4.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Xinhua Winshare Publ |
Wuhan Yangtze and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Xinhua Winshare
The main advantage of trading using opposite Wuhan Yangtze and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Xinhua Winshare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Wuhan Yangtze vs. Chengdu Spaceon Electronics | Wuhan Yangtze vs. China Asset Management | Wuhan Yangtze vs. Ye Chiu Metal | Wuhan Yangtze vs. Huaxia Fund Management |
| Xinhua Winshare vs. China Mobile Limited | Xinhua Winshare vs. Huizhou Speed Wireless | Xinhua Winshare vs. Runjian Communication Co | Xinhua Winshare vs. Wuhan Yangtze Communication |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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